In part 1(BANK’S BUSINESS; Few Suggestions. PART….1) and 2(BANK’S BUSINESS; Few Suggestions. Part….2) of the blog, different suggestions were put forth for the banks for improving the health of their institutions. Three remaining suggestions are discussed here under:-
- Creating different layers of income
Banks shouldn’t depend on only one type of income i.e from interest on loans and advances. They have now many other fields available for creating different layers of income such as (1) Bank insurance (2) Selling of mutual funds (3) Trading of shares (4) Providing Depository services to clients(financial services for clients) (5) Making treasury operations more efficient (6) Better cash management (7) Providing fee-based services to various Govt. departments, institutions and Corporates for collection taxes, fees or their bills (9) Providing cash management services to big religious trusts, Corporates, railways, airlines, and metros etc.(10) Providing consultancy services for different activities (11) Providing non-fund based facilities such as letter of credits and bank guarantees (12) Acting as bankers to The Issue and underwriting the Issue of shares etc. etc.
Earning income is important but plugging its leakages by exercising effective control over all types of capital and revenue expenditures too is very important. ‘Spend where necessary but strictly avoid wastage’ is a mantra for an efficient control system on revenues.
All these services are very lucrative but require properly trained and dedicated manpower to handle these portfolios.
- Training and upgrading of knowledge.
Providing proper training and upgrading of knowledge of the staff at the operational levels is very necessary. It is generally observed that the staff doesn’t take the training seriously and consider deputation to training as a pleasure tour on paid holidays. This concept/notion is very dangerous. Providing training to staff is a very expensive exercise and in addition to heavy expenses, it takes a toll on the quality of services which get affected during the absence of the concerned staff from their active duties. We all know that it is only the men in the armed forces who take their training very seriously because they are aware of the fact that they would be the first to suffer the consequences of not taking the training seriously.
Both these aspects of heavy expenses and non serious attitude towards training can be taken care of by following the ‘DEEP SE DEEP’ model of providing training. There is no dearth of prime training institutions in the country and abroad. A few intelligent officers from the senior scales can be deputed for training to a particular institute for training in a particular field with a clear understanding and instructions that they will follow the schedule of training very seriously, have discussions with the experts who provide training in order to remove doubt if any and come well prepared to impart the same training to other fellows in the bank on their return. These officers so trained be required to impart training to other staff members in batches at the bank’s own offices/Premise/training centres in the evening for a few hours. The staff so trained will have to follow the same routine of providing training to other staff and so on. This model will save expenses, make the trainees accountable and experts, and create in-house expertise in many fields of activities. This will also create a lasting bonding amongst various cadres of staff as well as a sense of belonging for the institution. Bank’s training centres can be made self-sustaining and income generation units by providing training to staff of other banks in specialised fields at a suitable cost/fees.
- Customer meets with higher level executives.
A good leader is a good listener. People want to be listened to. They feel relieved and delighted once they are listened to. They feel that they are cared for and are important. Bank’s top brass should therefore not ignore this aspect of public feeling at any cost and shouldn’t feel shy of holding customer meets and face criticism if any with a good spirit. This creates long lasting bonds with clients as they feel that they are important. Any cutoff from the masses is suicidal for the banks. Banks, therefore, need to remain in touch with their customers, listen to them and implement the good suggestion forwarded by them.